Employees are considered the most important resource of an association, but associations do not take this reality into account and always consider them as a cost in their accounting report (Ahmed and Kolachi, 2013). In association, employees are the most critical resources through which each of the goals and destinations are mastered. Compensation and benefits play an important role in defining employee retention. Remuneration is a cost-effective instrument in the hands of administration to enhance the viability of the authority and can have a considerable impact on employee conduct and profitability. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an Original Essay The need to keep turnover rates low and stay in business has pushed the employer to focus on employee well-being and staff retention rather than customer focus. satisfaction (Sethi, 2012). Compensation plays an essential role in attracting, motivating and retaining competent employees. According to Ibrahim and Boerhaneoddin, compensation encourages efficient employees to stay on the job longer. Additionally, Ibrahim and Boerhaneoddin proposed that generous rewards build employee loyalty and ultimately lead to job satisfaction, commitment, and loyalty. Implementing a well-planned retention strategy not only reduces turnover rates but motivates employees to maintain their job performance in a productive manner (Scott, 2013). According to Adam's (1963) equity theory, there is a direct relationship between the fair or unfair distribution of resources and employee performance. Through previous studies, it has been clearly established that compensation plays an important role in job satisfaction, which results in the retention of an employee. Before we continue, we need to understand the three components of compensation: compensation (money or salary, commission, overtime), fringe benefits (health care, vacation pay, retirement funds), and non-financial benefits (training and development). Before the 1970s, there were virtually no employee loyalty programs, with the human resources department simply organizing picnics and ceremonies. But with time, not only technologies have changed, but human resource management theories have also changed. William, McDaniel, and Ford (2007) recommended that organizations should increase their benefits if they cannot increase their salary in order to ensure job satisfaction. Compensation can have a direct influence on employee retention. This study will primarily focus on designing to analyze the impact of compensation and benefits on employee retention. As has been mentioned in most studies/research, there is an impact of compensation and benefits on employee performance, motivation, staff satisfaction, etc. in different sectors. So now we will analyze what types of compensation and benefits elements are most effective for employee retention in the banking industry, because it generally seems that in the banking industry most employees change jobs by because of the best packages and facilities. . The scope of the study is generally used across industries but we focus on banking industry because in banking industry their employees change jobs significantly due to”